$100bn Asian infrastructure bank approves 57 founding members

The China-led Asian Infrastructure Investment Bank (AIIB) has approved 57 countries as founding members after including an extra seven, according to China’s Finance Ministry.

Sweden, Israel, South Africa, Azerbaijan, Iceland, Portugal and
Poland were all included as founding members, according to a
statement released by the ministry on Wednesday. The
ministry added that although the March 31 deadline for founding
membership application has passed, the bank will continue to
accept new members. China has rejected requests from North Korea
and Taiwan to join the investment bank.

The AIIB is an “open and inclusive multilateral development
bank,” China's Vice Finance Minister Shi Yaobin was cited as
saying by Xinhua news agency. The 57 founding members cover five
continents, including Asia, Oceania, Europe, Latin America and
Africa, according to Shi. The founding members will have priority
over other countries which might sign up later, as they possess
the right to establish the rules for the bank.

Russia became a founder of the AIIB after applying for membership two weeks ago.
Joining the bank means Russian companies will be able to take
part in infrastructure projects in the Asia-Pacific region as
well get access to foreign investment in Russia.

The US and Japan are the two major countries that have abstained
from joining the AIIB. While the US has been pressing its allies not to join the institution
which is expected to challenge the Washington-based World Bank,
Japan hesitated over its relations with Washington and the AIIB's
potential rivalry with the Asian Development Bank. Earlier this
month, Washington reportedly questioned Japan following the
rumors of its possible participation but Tokyo has denied
everything.

The Asian Bank for infrastructure investment (AIIB) was established in 2014 by China. The bank will finance
infrastructure projects in the Asia-Pacific Region; its
headquarters will be in Beijing. The initial subscribed capital
of AIIB will be $50 billion and is planned to be increased to
$100 billion. The AIIB will provide financing for roads,
railways, airports and other infrastructure projects in Asia. It
is expected to be established by the end of this year.